Section R865-19S-56 - Sales by Employers to Employees Pursuant to Utah Code Ann. Section 59-12- 102A. Sales to employees are subject to tax on the amount charged for goods and taxable services. If tangible personal property is given to employees with no charge, the employer is deemed to be the consumer and must pay tax on his cost of the merchandise. Examples of this type of transaction are meals furnished to waitresses and other employees, contest prizes given to salesmen, merchandise bonuses given to clerks, and similar items given away.Utah Admin. Code R865-19S-56